India’s coal-fired power “will continue to play a critical role in meeting baseload demand and ensuring the nation’s energy security,” despite the government’s goal to have 80% of installed capacity and nearly two-thirds of total electricity generation from non-fossil sources by 2047, according to the Draft National Electricity Policy 2026 made public Jan. 21, as reported by S&P Global.
According to the report, the policy under public consultation signals sustained demand for domestic coal, particularly as India’s electricity consumption is targeted to rise to 2,000 kWh per capita by 2030 and to over 4,000 kWh by 2047, requiring significant additions to firm capacity.
India’s updated Nationally Determined Contributions, as highlighted in NEP 2026, set targets to reduce emissions intensity by 45% from 2005 levels and achieve 50% non-fossil fuel capacity by 2030. The country also aims to reach net-zero emissions by 2070, reflecting a commitment to sustainable growth and climate action.
Under the draft policy, new coal-based power plants should preferably be located near coal mines to reduce fuel transportation costs and logistical bottlenecks, while allowing limited capacity near load centers to support grid stability.
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